Kansans are now paying less tax at the grocery store as the state tax rate on food dropped from four to two percent on Monday. During the 2022 Legislative session, lawmakers passed the “Axe The Food Tax” bill, which phases out the state tax on food at the grocery store. At the start of 2023, the state tax rate on food decreased from 6.5 to four percent. Now in 2024, the rate is dropped to two percent. The tax will be eliminated on Jan. 1, 2025. “Axing the food tax down to two percent keeps more money in Kansans’ pockets. High prices shouldn’t force anyone to choose between paying their bills or feeding their family,” Gov. Laura Kelly said. “In 2024, we’re giving Kansans some additional tax relief at the grocery store.” According to Gov. Kelly, Kansans saved more than $187 million when the food tax was cut in 2023. In 2024, Kansans are expected to save about $12.5 million per month, which is $150 million in savings throughout the year. The “Axe The Food Tax” bill reduces the tax on food and food ingredients, as well as certain prepared food. Most grocery store food items are included in the tax reduction, as well as bottled water, candy, dietary supplements, soft drinks, bakery items and food sold through vending machines. The bill excludes alcoholic beverages and tobacco products. Food sales will still be subject to sales taxes imposed by counties and cities, it was reported.
Source: Holton Recorder
